Instagram checkout is a social commerce feature which allows Instagram users to directly purchase products within the Instagram app.
Instagram checkout: In-depth definition
Instagram checkout is available as part of the Instagram Shops functionality. Instagram shops is the digital storefront for brands and businesses which helps them list their products using their own branding. Potential buyers will be shown products in the app which can then be purchased natively in the application itself without the need to visit the business' website. This allows the shopper to have a convenient, simple, and secure shopping experience on a single platform. At the time of writing, Instagram checkout is only available in the US market, but Meta plans to roll it out globally.
How does the checkout feature on Instagram work?
To use the checkout feature on Instagram, you need to verify that your business is eligible for Instagram Shops. Once verified, you can set up a shop which can be managed in the Commerce Manager. The checkout process is enabled within the Instagram Shop itself. You can use your existing product catalog or a new one to target your shoppers on the app. If a user is interested in a product, they can easily complete the purchase on Instagram. The payment and shipping information for orders only needs to be entered once by the consumer and will be stored by Facebook. This way shoppers do not have to re-enter any of this information when making additional purchases. In addition, there is no requirement for creating a new account to complete transactions.
Instagram checkout also complements other shopping tools available on Instagram. For example: shopping from creators when they tagged your products in their posts, notifying shoppers about upcoming product launches or live shopping. In all mentioned cases, buyers can just shop the product right away.
Allowing your consumers to profit from this seamless shopping experience is a key part of a successful P2C strategy.
Instagram checkout: Setup and management
To set up the checkout function in the US market, you need the following information:
- Business category and type
- A business address in the US
- US Bank account details for collecting payouts
- A state tax registration number for every state in which the business operates
- A federal tax identification number that matches the business representative’s name for financial reporting
- A business representative’s personal or business identity information to verify the authenticity of the business
- Delivery options, return policy, and a customer service email address to set up customer service
Checkout on Instagram also requires you to be a Business Manager admin and the owner of your Instagram business account, Facebook page, and catalog in the Business Manager. In addition, you need to have Manage Page permissions for the Facebook Page connected to the Instagram business account and Manage catalog permissions for your product catalog. Last but not least, it’s necessary to have a commerce account which is connected to your Instagram business account, Facebook Page, and catalog. However, this will be created when you do the initial set up of your shop.